Justices Bar States, Users From Energy Price Suits

The Supreme Court today generally barred states and energy consumers from bringing federal antitrust suits against energy producers accused of conspiring to fix prices.

In a 5-4 ruling, the justices said only direct purchasers of energy--in this case utility companies--may file such suits.

The court ruled against Kansas and Missouri officials who accused a natural gas pipeline and five natural gas producers of illegal price fixing.

The attorneys general of 32 states had urged the high court to permit such suits.

Justice Anthony M. Kennedy, writing for the court, rejected arguments that states or residential customers should be permitted to sue because utilities lack incentive to go to court since they can pass on any overcharges to their customers.

“Utilities . . . have an established record of diligent antitrust enforcement,” Kennedy said. “History makes us quite hesitant to take from the utilities the responsibility for enforcing the antitrust laws.”